23H1 revenue / home net profit fell 9.34 per cent year-on-year and 5.70 per cent respectively, while new orders rose 10.49 per cent year-on-year. The company's 2023H1 achieved revenue of 16.633 billion yuan, down 9.52% from the same period last year; net profit from home was 1.824 billion yuan, down 5.70% from the same period last year; and new orders were 31.672 billion yuan, up 10.49% from the same period last year.
In a single quarter, 2023Q2's revenue was 9.142 billion yuan, down 20.10% from the same period last year, and its net profit was 1.145 billion yuan, down 10.90% from the same period last year. In terms of profitability, the annual gross margin / net profit rate of 23H1 is 24.96% / 12.68% respectively, an increase of 1.27% / 2.48 pct over the same period last year.
The core railway business is sound, and the urban rail business is under short-term pressure. In terms of business, the company's 2023H1 railway / urban track / overseas business / project general contract realized revenue of 88.69max, 39.95max, 5.87max, 3.135 billion yuan respectively, with year-on-year changes + 4.88%, 17.77%, 6.59%, 30.17%. The decline in performance is mainly due to: 1) the general contracting part of the project funds is slow, the construction period has been delayed; 2) the subway project construction business has been reduced. In terms of high-speed railway weak power system integration business, five national bids were opened in the first half of the year, and China General number contracted four projects, including Xiongxin, Chongqing and Guizhou, Guangzhan Guangfo Section, and Shanghai-Chongqing-Rong Han Section, with a market share of 81%. In the field of urban rail signal system integration, the company has contracted four projects, including Ningbo Line 7, Changchun Line 7, Tianjin Line B1 and Shenzhen Line 3 (including the renovation of the existing signal system of Line 3), with a market share of 42%.
There are plenty of orders on hand, and railways and overseas sectors are growing rapidly. The total amount of new contracts signed by the company's 2023H1 is 31.672 billion yuan, an increase of 10.49% over the same period last year. Among them, the total value of railway / urban rail / overseas / project general contracting and other fields is 97.76, 58.52 and 13.84 billion yuan respectively, with a year-on-year change of + 30.15% and 9.57%, respectively. In the same period, the order on hand is 152.275 billion yuan. In the overseas market, relying on the unique advantages of the "trinity" of design and development, equipment manufacturing and engineering services, the company has contracted major foreign projects one after another. continue to promote the progress of overseas projects such as the Nuosu section of the Xiongsai project and the Yawan high-speed rail project, and the brand strength and influence continue to improve.
Risk tips: downstream prosperity is not as expected; industry competition is intensified; overseas market expansion is not as expected.
Investment suggestion: the company is the world's leading rail transit control system service provider, the market share of domestic high-speed railway and urban rail transit steadily occupies a leading position, and its international influence steadily increases and continues to open overseas markets.
At this stage, the company is full of orders on hand, and the company is expected to fully benefit from the continuous growth of the domestic and foreign rail transit market. We maintain the company's 23-25 net profit of 39.34 RMB 4.280 billion RMB, corresponding to PE15/14/13 times, and maintain the "overweight" rating.